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Jim Cramer seems to have lost conviction in Laxman Narasimhan – the chief executive of Starbucks Corp (SBUX) after a “terrible” quarter the coffee giant reported last night.
What Cramer said after interview with Starbucks CEOThe famed investor asked Narasimhan for a reason why his Charitable Trust should hold $SBUX for another quarter in an interview on Wednesday.And while the chief executive did say he has a plan aimed at meaningful improvement from here on out – Cramer evidently is not convinced.
It’s difficult to come on air and say things are good. I would have called for more of a truth and reconciliation discussion because you can’t go from plus 15% – 20% projection to these numbers.
Starbucks stock is now trading at roughly the same price at which it did some five years ago.
Cramer trimmed price target on Starbucks stockStarbucks blamed weakness in China and bad weather in the United States for its disappointing performance in fiscal Q2.But Jim Cramer is all the more “distressed” because of that comment as numbers from peers like McDonald’s and Tim Horton “do not agree”. His Charitable Trust even trimmed its price target on $SBUX to $90 following the company’s second-quarter earnings report.Starbucks stock is taking a hit this morning also because the management now expects low-single-digit growth in revenue this year – down significantly from up to 10% it had guided for earlier.All in all, the Mad Money host is not entirely sure anymore that Laxman Narasimhan can succeed as the chief executive of Starbucks Corp.More By This Author:TG Therapeutics stock just rallied 30%: what happened?4 Top Green Energy Stocks To Consider For Long-Term Investment In May MicroStrategy Bought 25,250 Bitcoins In Q1
